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Entrepreneurship Chapter 11 Test Review

Total questions: 40

Worksheet time: 21mins

Name
Class
Date
1.
In a small business, the owner can hire the ideal person and still have problems. 

a)
True
b)
False
2.
In an interview an owner can ask an applicant if he or she has ever been arrested for a crime. 
a)
True
b)
False
3.
Which of the following laws prohibits discrimination in hiring, dismissal, or promotion on the basis of race, color, gender, religious beliefs, or national origins? 

a)
Americans with Disabilities Act
b)
Civil Rights Act
c)
Fair Labor Act
d)
Age Discrimination Act
4.
A job offer is finalized by _________. 
a)
a handshake
b)
employer putting it in writing
c)
candidate reading the offer
d)
candidate signing the offer
5.
Which of the following terms means a set amount of compensation for a given time period? 
a)
paycheck
b)
hourly wage
c)
salary wage
d)
commission
6.
When a small business owner pays an individual a percentage of sales, this is called a _________. 

a)
paycheck
b)
bonus
c)
commission
d)
salary
7.
Which of the following laws established a minimum wage for workers? 
a)
Fair Labor Standards Act
b)
Civil Rights Act
c)
American's with Disabilities Act
d)
Sherman's Antitrust Act
8.
Which of the following laws states an employer cannot discriminate in pay to men and women who do the same job? 

a)
American's with Disabilities Act
b)
Civil Rights Act
c)
Equal Pay Act
d)
Fair Labor Standards
9.
An example of a benefit a company can offer is: 
a)
401K
b)
retirement plans
c)
sick leave
d)
all of these
10.

Human resource management is concerned with ________ competent employees.

a)

obtaining

b)

training and keeping

c)

obtaining, training, and motivating

d)

obtaining, training, motivating, and retaining

11.

A small business owner should never share his or her values and plans for the business with a job applicant. That information is classified.

a)

True

b)

False

12.

When an employer notices an employee not performing well or causing problems, the employee should be fired immediately.

a)

True

b)

False

13.

The employees of a company are usually referred to as the capital resources.

a)

True

b)

False

14.

The employees of a company are usually referred to as the human resources.

a)

True

b)

False

15.

The amount of money a salaried employee is paid does not change, no matter how many hours per week are worked.

a)

True

b)

False

16.

A profit-sharing plan is a type of compensation package that includes a base salary plus commission.

a)

True

b)

False

17.

In a small business, all employees may report directly to the company owner. In large companies, lower-level employees usually report to a supervisor.

a)

True

b)

False

18.

In a new business venture, the entrepreneur may serve in all levels of management.

a)

True

b)

False

19.

The Affordable Care Act (ACA) requires businesses with 10 or more employees to provide health insurance or pay a penalty.

a)

True

b)

False

20.

A training program for new employees should begin as soon as they are hired; training should end when the employee has learned how things are done.

a)

True

b)

False

21.

When a company “screens” job applicants, people who are not right for the job are removed from consideration for the job.

a)

True

b)

False

22.

When you decide to make a job offer to a candidate, contacting the person by e-mail is the best way to extend the offer.

a)

True

b)

False

23.

Adding employees to the payroll is costly for a business.

a)

True

b)

False

24.

One of the best ways entrepreneurs find employees is by acting on referrals from friends, acquaintances, or employees.

a)

True

b)

False

25.

Social media sites are a poor choice for recruiting, because job seekers see these sites as social outlets rather than a place to search for jobs.

a)

True

b)

False

26.

Both paid leave and vacation represent costs to employers, because employees are paid while they are not working.

a)

True

b)

False

27.

Which of the following is a way to motivate employees?

a)

treat all employees the same

b)

empower employees by including them in decision making

c)

praise employees frequently

d)

all of the above

28.

An organizational chart shows the company’s chain of command, which indicates

a)

who has been working at the company the longest

b)

the physical layout of a store or business

c)

who reports to whom in the company

d)

the salaries of all company employees

29.

A small business owner should do all of the following when interviewing potential employees EXCEPT

a)

explain the atmosphere in which the job applicant would work

b)

avoid ruling out a job applicant until the interview is over

c)

refuse to allow the job applicant to ask questions—you are the one asking the questions

d)

talk about the significance of working at a new business

30.

An amount paid for a job position stated on an annual basis is called a

a)

bonus

b)

commission

c)

wage

d)

salary

31.

In this type of job training, employees receive regular feedback and instruction from their manager.

a)

coaching

b)

on-the-job training

c)

shadowing

d)

mentoring

32.

All of the following are resources an entrepreneur can use for recruiting EXCEPT

a)

in-store advertising

b)

classified advertisements

c)

employment agencies

d)

all of the above can be used as recruiting resources

33.

Students who will work for little or no pay in order to gain experience in a particular field are called

a)

interns

b)

temporary employees

c)

apprentices

d)

freelancers

34.

This law defines the employment relationship between an employee and an employer.

a)

Fair Labor Standards Act of 1938

b)

Age Discrimination in Employment Act of 1967

c)

Americans with Disabilities Act of 1990

d)

Civil Rights Act of 1964

35.

A specific work activity an employee performs—such as answering the telephone or making photocopies of reports—is called a

a)

job

b)

task

c)

human resource

d)

function

36.

Which managers work directly with the employees who perform the day-to-day tasks of a business?

a)

middle managers

b)

top management

c)

supervisors

d)

all of the above

37.

Dexter sells stereo equipment and is compensated under a combination plan. He earns $14.25 per hour plus 15 percent of whatever he sells. Last month, Dexter worked 150 hours and sold ten stereo systems. Five of the systems were high-end models with a price of $2,500 each. The remaining systems were $750 each. What was Dexter’s total compensation last month?

a)

$4,575

b)

$2,137.50

c)

$28,750

d)

$4,312.50

38.

Last year, Sterling sold $790,000 worth of industrial equipment. He received 12 percent of his sales as commission. What dollar amount was Sterling paid on commission?

a)

$94,800

b)

$695,200

c)

$884,800

d)

$58,700

39.

Penelope worked 90 hours this month. She earns $10.50/hour. How much did Penelope earn this month?

a)

$900

b)

$945

c)

$420

d)

$787.50

40.

Determining the number of employees you need and defining a process for hiring them is called __________.

a)

recruiting

b)

benefits

c)

delegating

d)

staffing